You're right. That sort of strategy only works for obscure stocks that don't generate the competition for a bidding war, but for STX no one is going to let this thing go for cheap. A good example is WGO, no one in their right mind was going to let BPT buy it for 19c/sh. We all know Mineral Resources accidentally used STX's ABN in one of their announcements, and if MIN are interested there are bigger fish with their eye on us too.
IMO shorters are banking on a cap raise to close out their position. Wouldn't be surprised if there is one more to top up and pay for the WE & SE developments before being cashflow positive.
STX Price at posting:
18.5¢ Sentiment: None Disclosure: Held
(20min delay)